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Surprising retirement statistics

A recent article written by Christine Benz and MorningStar.com highlights a number of surprising statistics regarding retirement. Overall, the article points to the fact that a large percentage of U.S. citizens are ill-prepared to financially support themselves during retirement.

According to the article, 45 percent of retirees don't factor inflation into their retirement planning. This figure is more disturbing when taken in with the additional fact that one million dollars in assets would be needed to deliver an annual income of $50,000 per year for 25 years, if one assumed a five percent rate of return and 3 percent inflation rate. If a five percent inflation rate were assumed instead, $1.25 million would be required.

The article reports that only 13 percent of people look at least 20 years into the future when planning their retirement. On average, women will spend 21 years in retirement and men will spend 17.

Benz writes that on average, a 65-year-old couple retiring in 2011 will need $230,000 for medical expenses. Roughly 70 percent of Americans over the age of 65 will need long-term care services at some point during their lives.

According to SmartMoneyAdvice.com, more than one million Americans filed for bankruptcy in 2000, and currently more than 30 million Americans are in danger of doing the same. Comparing annuity quotes can help a person locate the most favorable accounts available to them.